Transport & Logistics Sector Insight

Transport & Logistics Deep Dive LSIP

Transport and Logistics Sector Insight

The Sector Now

The transport and logistics sector is significant for Essex, with two airports, ports, road and rail connections playing a national and international role.  Nearly 60,000 people are employed in transport and storage roles across Essex, at levels above the national average. In Thurrock, a quarter of the total workforce are in roles in the sector, reflecting the presence of notable hubs such as DP World London Gateway, Thames Freeport and large employers such as Amazon. Other notable names in the sector include Southend and Stansted Airports, and Harwich International Port.

Logistics is important to other sectors and key to ensuring goods can move locally, nationally and internationally in the most efficient way. It is therefore important to manufacturing and engineering and also sectors such as retail.  Technology is increasingly used in areas such as tracking, visibility and automation which helps with efficiencies and streamlining.  Clearly, investments in infrastructure are important also -including roads, ports, and airports and contributing to the industry’s growth. Consumer trends are also impacting, with factors such as online shopping driving demand.  As a result, investments in warehousing, last-mile delivery, and fulfilment centres have increased and this is likely to continue.

As well as ports, Essex has an extensive network of major highways and motorways that cross the county. The M25 motorway, a notable feature of this network, circumnavigates Greater London and intersects Essex, playing an indispensable role in facilitating the transit of goods to and from the capital and other parts of the United Kingdom. In addition, key arterial routes such as the A12, A13, and A127 provide seamless connectivity between Essex, London, and the broader national landscape.  The Dartford Crossing and Tunnel are also important in terms of logistics and a key road crossing the River Thames, connecting Kent to the south with Essex to the north. This is seen by the Highways Agency as nationally significant given the volume of traffic (routinely up to 160,000 vehicles).  The Lower Thames Crossing (due to open in the early 2030s) will add significantly to the capacity of traffic across the Thames and which is described further in the advanced manufacturing and construction sector insights.

Rail also plays an important role, with freight trains running from the ports to deliver goods to London and other locations and carrying various goods including consumer and also construction materials, agricultural products and other essential commodities. There are various operators currently covering Essex including Greater Anglia (now under public ownership) and c2c and with some areas (e.g. Epping, Shenfield) covered by the London tube network. As of October 2025, there is also a new station on the Greater Anglia line – Beaulieu Park, which is the first new station on that line for over 100 years.

Nationally

The importance of the sector is acknowledged in the government’s industrial strategy which states that ‘the freight and logistics sector makes a vital contribution to the UK economy and the competitiveness of the eight growth driving sectors, ensuring that the right goods are in the right place at the right time.’  The strategy also outlines ongoing government support for the sector in the form of initiatives such as the Freight Innovation Fund accelerator and the Zero Emission HGV and Infrastructure Demonstrator programme which ‘is rolling out hundreds of battery electric and hydrogen fuel cell HGVs, and new charging and fuelling infrastructure, by March 2026’. The importance of the Lower Thames Crossing is also highlighted with 4.4 million HGVs expected to use it in the first year.  The government is also due to deliver a new plan for freight and logistics soon which will further set out its importance to the economy.  The strategy also notes the importance of transport and that SMEs have fed back that poor transport can hinder growth. There are therefore plans to give Mayors power around transport to help address this.

 

Logistics UK have also produced an annual review which helps illustrates the significance of the sector and calls for greater recognition, stating that it ‘generates £170 billion for the UK economy, employs over 8% of the nation’s workforce and is a key enabler in the government achieving its growth agenda.’  The review also sets out some of the challenges, which include recruiting people with the right skills to fill key roles.  It is noted that some larger employers are using AI but that this is not a sustainable solution with continuous training required.

The sector and growth for Essex

The sector in Essex is likely to continue to see growth given developments such as the Lower Thames Crossing and the continued need and demand to move goods with the strategically significant location of local ports and airports.  Notable developments that will impact on local growth in the sector include:

  • A £1 billion expansion of London Gateway, which DP World has confirmed to take place within 5 years, and which will make it Britain’s largest container port. This will include two new shipping berths and a new rail terminal.
  • The continued growth of Thames Freeport and Freeport East set to provide 21,000 and 13,500 new jobs respectively
  • £1.1 billion expansion of Stansted Airport already underway
  • Planned terminal development at Southend Airport.

 

Work already undertaken through the LSIP has helped to ensure educators are responding to the current and future needs of the economy, with options through further and higher education.

Skills provision and requirements

As this insight has set out, the sector has a need to attract new entrants and with Logistics UK highlighting the need for people with the rights skills to meet recruitment needs. Alongside degrees and apprenticeships, employers have cited the need for flexible funding for skills and vocational training.  Logistics UK notes that ‘skills shortages are a perennial issue for logistics businesses, with hard-to-fill skilled technical roles posing a particular challenge.’ Aspects such as digital, robotics and AI are increasingly impacting and changing roles within the sector, with robotics used in areas such as warehousing and port operations.

 

Locally, there are a range of courses on offer through further and higher education and training providers to support the sector. Examples include Logistics and Supply Chain Management at the University of Essex and international freight Forwarding apprenticeship at South Essex Colleges Group

Essential Skills for the sector

As well as technical skills required by the sector there are transferrable and essential skills highlighted by employers and sector bodies with organisations such as Avail Logistics highlighting those such as attention to detail, problem solving, technology proficiency and communication.

Top ten specialist and essential skills advertised in Essex vacancies over the past year (to Summer 2025) helps to illustrate what employers in the logistics and transport sector locally are looking for. You can view further information and detail via this link.

Specialist Skills advertised                                               Essential Skills advertised

·  Warehousing                                                                       ·  Communication

·  Manual Handling                                                               ·  Loading & Unloading

·  Forklift Truck                                                                       ·  Customer Services

·  Palletizing                                                                            ·  Detail orientated

·  Housekeeping                                                                    ·  Lifting Ability

·  Safety Procedures                                                             ·  Operations

·  Operations                                                                          ·  English Language

·  Stock Control                                                                      ·  Management

·  Machinery                                                                           ·  Strong Work Ethic

·  Inventory Management                                                   ·  Organisational Skills

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